Mergence increases Ejuva stake to 66%
By Hilary Mare
ASSET manager, Mergence has increased its shareholding of the two Ejuva renewable energy projects in Gobabis, from 17 percent to a majority stake of 66 percent.
It acquired the 49 percent interest previously held by co-developer and initial part-financier energy engineering company CIGenCo.
The two adjacent Ejuva solar power plants have a combined output of 10 MW and started operations in August 2018 as part of the Namibian Feed-in Tariff (Refit) programme.
The Ejuva projects are backed by 25-year power purchase agreements with Namibian national power utility NamPower and feed an estimated 25.
8 GWh/y into Namibia’s national grid.
The Refit programme was initiated by the Ministry of Mines and Energy and the Electricity Control Board to establish independent power producers in Namibia.
Hileni Nghinaunye, Mergence portfolio manager, said that the increased Mergence shareholding demonstrates further localisation of the renewable energy industry in Namibia:
“The Mergence group ethos is to create shared value and this is what we are achieving as it is ultimately the retirement fund members of the GIPF who benefit from the steady financial returns provided by infrastructure investment, as well as the positive social returns provided by a strengthened economic environment – whether it be renewable energy, job creation or skills development.”
She added that the increased Mergence stake in Ejuva is in line with the fund manager’s broader strategy to position itself as a strategic regional energy company focused on tracking the acute power shortage in Namibia.
The renewable energy sector has held up well over the past year during the Covid-19 pandemic.
“This is very good news as it means vital sectors, such as clinics and hospitals in the healthcare sector, as well as manufacturing have continued to benefit from an uninterrupted supply of power.
“Mergence is therefore delighted to continue joining forces with the projects,local partners and co-developers, OKA Capital and BPI Energy Solutions, who played a key role in successfully bringing the projects to commissioning three years ago,” said Nghinaunye.
Local partners own 34 percent of the two plants.